Bitcoin Bull Index Crushed by Fed Rate Hike

The Bull Score Index for Bitcoin plummeted from 80 to 30 in just one week after the Federal Reserve raised interest rates by 25 basis points on September 16. The index, which aggregates multiple on-chain and market signals, had surged toward 80 as Bitcoin pushed above $80,000 in late August, fueled by optimism about an accommodative macro environment.

However, this optimism evaporated when the Fed signaled it was willing to tighten again, leading to a sharp drop in the Bull Score Index. Bitcoin is currently trading around $76,000, down about 4% over the past week, and the broader direction is clearly downward.

The September rate hike marks a philosophical reversal for the Fed, which had spent much of 2024 and 2025 cutting rates after its aggressive tightening cycle peaked in 2023. Projections indicate at least one additional rate hike is expected before the end of the year, potentially pushing the target range toward 4.25%.

Short-term holder sentiment has weakened, suggesting that recent buyers are sitting on losses or slim margins and growing anxious. ETF outflows have also become notable, with months of inflows reversing direction in favor of withdrawals.